In recent years, bioenergy policies have increased the competition for land as well as the risk of adverse environmental impacts resulting from deforestation and greenhouse gas emissions (GHGs). Primary land-use objectives confronting society today include meeting the growing demand for agricultural products, especially energy crops, preserving essential ecosystem services for human well-being and long-run agrarian production, and contributing to the climate policy target. Here, future agricultural, societal and environmental consequences of bioenergy policies under different global climate and societal development scenarios were assessed using a novel Forest and Agricultural Sector Optimization Model for Nigeria (NGA–FASOM). The results reveal that, in Nigeria, meeting emission reduction requires an implementation of a minimum carbon price of $80/ton within the forest and agricultural sectors. A carbon price alone is not sufficient to preserve the remaining forests and pasture land in Nigeria when bioenergy is subsidized. Furthermore, the result shows that subsidy on bioenergy does not have any significant effect on the total social welfare. The findings in this study provide a guide for policymakers in designing appropriate policies addressing bioenergy industry issues in Nigeria.
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